The Economic Survey 2021-22, tabled in the Parliament by Finance Minister Nirmala Sitharaman on Monday, has projected India's growth for the financial year 2023 at 8-8.5 percent. The FY22 GDP growth is seen at 9.2 percent.

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The government tabled Economic Survey for 2021-22 in the Parliament after President Ram Nath Kovind's address on Monday, the first day of the Budget session.

"Advance estimates suggest that the Indian economy is expected to witness real GDP expansion of 9.2 percent in 2021-22 after contracting in 2020-21," said the Economic Survey.

"With the vaccination programme having covered the bulk of the population, economic momentum building back and the likely long-term benefits of supply-side reforms in the pipeline, the Indian economy is in a good position to witness GDP growth of 8.0-8.5 percent in 2022-2," it said.

GDP growth projections for 2022-23 and estimates for the current year are among the key figures in the Survey as these reflect the pace at which the government expects the economy to show a firm recovery from the COVID-19 pandemic.

The government had projected the economic growth for 2021-22 at 11 percent in the last survey which was presented in January 2021 amid the COVID pandemic. However, the statistics ministry has projected the growth at only 9.2 percent for the current fiscal. This is a tad lower than the 9.5 percent projected by the Reserve Bank.

"Almost all indicators show that the economic impact of the “second wave” in Q1 was much smaller than that experienced during the full lockdown phase in 2020-21 even though the health impact was more severe," said the Survey.

According to it, agriculture and allied sectors have had the least impact of the pandemic and the sector is expected to grow by 3.9 percent in 2021-22 after growing 3.6 percent in the previous year.

Total consumption is estimated to have grown by 7.0 percent in 2021-22 with significant contributions from government spending, it said.

However, it warned the global environment still remains uncertain. A new

wave of Omicron variant, inflation, and the cycle of liquidity withdrawal are some of the major factors to keep an eye on, as per the Survey.

Also Read: What is an Economic Survey and how will it be different in 2022?

The Economic Survey is the Finance Ministry's yearly flagship publication. It analyses India's economic development over the previous fiscal year by offering comprehensive statistical data on all sectors including manufacturing, agricultural and industrial. It also analyses the country's total macroeconomics over the prior year and furnishes a projection for the coming fiscal year.

The Economic Survey for 2021-22 has only one volume due to the absence of a full-time chief economic advisor (CEA).

Last week, the government appointed Venkatraman Anantha Nageswaran as its chief economic advisor, replacing Krishnamurthy Subramanian, who had returned to academia in December 2021 post his three-year tenure as CEA.

The Union Budget 2022-23 will be presented in the Parliament on February 1.

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First Published:Jan 31, 2022 1:08 PM IST